Value Unleashed

Market Update

Seventy Canadian M&A transactions closed this past week. Year to date, M&A closed deal count is 2.4% lower than the comparable period in 2017. The Canadian dollar depreciated by 0.49 cents, ending the week at 75 cents. The TSX underperformed the S&P 500 by 4.0% in U.S. dollar terms. WTI Crude oil rose by 1.0%, ending the week at $50.93 per barrel.

According to the Lead Left, credit strategy hedge funds experienced their worst monthly performance since January 2016 with a -0.31% return for October. Overall hedge fund performance for 2018 year to date is into negative territory at -0.78% with two months remaining in the year. The industry has found it difficult to navigate volatile equity markets in the past few months.
 

Canadian M&A Transactions[i]

Energy (Closed)

           Ashtead Technology has Acquired Welaptega Marine

Ashtead Technology Ltd., a Phoenix Equity Partners, Souter Investments, BMO Private Equity and Buckthorn Partners backed U.K. company that provides integrated equipment solutions for subsea and onshore monitoring and inspection sectors, has acquired Welaptega Marine Limited, a Canadian company that specializes in offshore oil and gas services and develops underwater 3D imaging technologies. No transaction terms were released.

Industrials (Announced)

           MNP to Acquire Roberts, Marlowe, Jackson, Jackson & Associates

MNP LLP., a Canadian company that offers accounting and consulting services, has agreed to acquire Roberts, Marlowe, Jackson, Jackson & Associates, a Canadian company that provides professional accountants and business advisory services. No transaction terms were released.

Industrials (Closed)

People has Acquired Benefit Partners

People Corporation (TSXV:PEO), a Canadian company that provides group benefits, group retirement, and human resource services in Canada, has acquired Benefit Partners Inc., a Canadian company that provides employee group benefits and group retirement consulting services. No transaction terms were released.

Solotech has Acquired SSE Audio Group

Solotech Inc., a Desjardins Business Capital, Caisse de dépôt et placement du Québec and Claridge, Inc. backed Canadian company that engages in rigging systems for festivals, television shows, and other related activities, has acquired SSE Audio Group Limited, a U.K. company that rents, sells, and installs professional audio equipment for the live events industry. No transaction terms were released.

Consumer Discretionary (Closed)

Atar Capital has Acquired Microcel

Atar Capital LLC., a U.S. private equity firm specializing in corporate divestitures has acquired Microcel Corporation, a Canadian company that distributes consumer electronics. No transaction terms were released.

Consumer Staples (Announced)

Newstrike Brands to Acquire Neal Brothers Foods

Newstrike Brands Ltd. (TSXV:HIP), a Canadian company that produces and sells medical marijuana in Canada, has agreed to acquire Neal Brothers Foods Inc., a Canadian company that produces snack products. No transaction terms were released.

Information Technology (Announced)

           Patriot One Technologies to Acquire EhEye

Patriot One Technologies Inc. (TSXV:PAT), a Canadian technology company that engages in the commercialization of a system to detect concealed weapons utilizing radar technologies, has agreed to acquire EhEye Inc., a New Brunswick Innovation Foundation, Investment Arm backed Canadian company that develops video surveillance recognition software solutions. Total transaction value is estimated to be $3.6 million.

           BLOK Technologies to Acquire The Worx Solutions

BLOK Technologies Inc. (CNSX:BLK), a Canadian company that invests in and develops companies in the blockchain technology sector, has agreed to acquire The Worx Solutions Inc., a Canadian company that develops and markets customer relationship management and data analytics software platform under the brand name Businessworx for the retail industry. Total transaction value is estimated to be $730 thousand.

Ontario Teachers' Pension Plan Board to Acquire Fleet Complete

Ontario Teachers' Pension Plan Board, a Canadian privately-owned pension fund, has agreed to acquire Fleet Complete, a Madison Dearborn Partners backed Canadian company that provides IoT solutions for fleet, asset, and mobile workforce management to customers worldwide. No transaction terms were released.

Information Technology (Closed)

Jonas Software has Acquired Leonardo Worldwide

Gary Jonas Computing Ltd., a Canadian company that acquires independently managed software companies acquired Leonardo Worldwide Corporation, a Lake Capital and Relay Ventures backed Canadian company that provides online visual content management and distribution solutions for hotels and hotel companies worldwide. Total transaction value is estimated to be $1.0 million.

Other (Announced)

Kal Minerals to Acquire Vanadium North Resources

Kal Minerals Corp. (CNSX:KAL), a Canadian company that operates as a junior mineral exploration company in Canada, has agreed to acquire Vanadium North Resources Inc., a Canadian mining and technology company that creates high-strength steel and long-lasting commercial batteries. No transaction terms were released.

Other (Closed)

Jam City has Acquired Bingo Pop

Jam City, Inc., a U.S. developer of mobile games, has acquired Bingo Pop, a Canadian developer of mobile games.  No transaction terms were released.